McHenry: Artificial Intelligence Holds the Promise to Enhance—Not Replace—Human Progress
Washington,
July 23, 2024 -
Today, the House Financial Services Committee, led by Chairman Patrick McHenry (NC-10), is holding a hearing on artificial intelligence (AI) applications in financial services and housing. Committee members will consider existing and growing AI use cases across these industries—including the range of benefits and potential risks the technology poses—and the hurdles to adopting the technology. This hearing builds on key bipartisan efforts from the Committee’s Working Group on Artificial Intelligence and its recently released staff report.
Watch Chairman McHenry’s opening remarks here.
Read Chairman McHenry’s opening remarks as prepared for delivery:
“Thank you to our witnesses for being here today.
“This hearing is a historic milestone for the Committee. Today we will examine use-cases of artificial intelligence in financial services and housing.
“At its best, artificial intelligence holds the promise to enhance—not replace—human progress. Unfortunately, its novelty and perceived risks have delayed adoption in many sectors of our economy.
“In January, Ranking Member Waters and I formed a bipartisan working group to explore the use of AI within our Committee’s jurisdiction. I appreciate the Ranking Member and her staff for their partnership and efforts on this endeavor.
“I also want to thank Working Group co-leads, Congressmen Hill and Lynch, for their leadership.
“The Working Group builds on the success of the Task Force on Artificial Intelligence in previous Congresses.
“The bipartisan Working Group embarked on a months-long fact-finding mission, including six roundtables, a trip to MIT, and countless other meetings.
“Members engaged with regulators, technologists, market participants, and consumer advocates to gain a deeper understanding of how AI is currently impacting our financial system, as well as how it may do so in the future.
“This was a comprehensive process, which is outlined in the bipartisan report released last week.
“This collaborative approach will benefit Congress as we work to keep pace with this evolving technology.
“To be sure, AI is not new to the financial services industry. Financial firms have used algorithms for decades, whether for analyzing large data sets or trading.
“However, new developments in Generative AI, or Gen AI, have excited the imaginations of many.
“The financial services industry—one of the most highly regulated in America—is a clear entry point as policymakers attempt to tackle the thorny questions AI presents.
“We should be leery of rushing legislation. It’s far better we get this right, rather than be first. In other words, policymakers should measure twice and cut once.
“American financial regulations are technology neutral and should remain that way.
“To be clear, the use of Gen AI does not absolve a firm from complying with existing consumer protection laws.
“At the same time, our regulators must ensure they are equipped to take on this new technological frontier.
“This Committee should examine whether current regulation needs to be clarified, and carefully consider if targeted legislation to close regulatory gaps may be needed.
“Today, we will discuss the importance of quality data, credit access, model creation, model risk management, cybersecurity, human touchpoints, and more.
“This hearing will advance the conversation on the use of AI in financial services and cement this Committee’s leadership on AI policy.
“I’ll close with this. Gen AI is here. We cannot put it back in the box. It will become more widely adopted to the point it is embedded in our everyday lives.
“We cannot allow the fear of the unknown to thwart the United States’ role as a hub for technological innovation.
“Far greater than the risks associated with AI itself, are the risks of allowing foreign competitors and adversaries to lead the development, adoption, and terms of use.”
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